CHAPTER 8
Litigation Strategies Managing Litigation Risk and Addressing Other Investor Concerns
PERRIE WEINER AND EDWARD TOTINO DLA Piper US LLP
A PIPE is an invaluable financing product serving a legitimate need in the marketplace. Commonly, PIPE issuers are unable to secure financings in a more traditional manner. Unfortunately, some issuers and their lawyers have tried to impugn the integrity of this type of financing, predictably in cases where the PIPEs involve high-risk financing pursued by unstable companies. Such issuers may look for litigation opportunities involving investors that have participated in PIPEs in order to rescue themselves from inevitable financial ruin. For example, a company might issue debt or preferred stock ...